Oil Crisis – Palm Oil and Crude Oil at record high

Pin It

Nov 07 2007
Linked In

Malaysian crude palm oil futures broke past the key RM3,000 resistance level to strike a new high today, after crude jumped to a record peak and soyoil soared to a near 33-year high. Prices also gained as financial players covered their short positions ahead of an Indonesian industry conference tomorrow, when influential analyst Dorab Mistry is due to give forecasts on palm prices and exports, traders said.

The benchmark January contract rose as much as RM42, or 1.4 per cent, to a high of RM3,002, the seventh record high in little more than three weeks. At 0330 GMT, the contract was up RM27 at 2,987. “For the first time ever, we are trading with RM3,000 for a metric tonne. Never has there been so much volatility in this market,” said a dealer with a foreign trading house.

Palm and Crude Oil Record HighMeanwhile, oil prices jumped to a trading record above $98 a barrel Wednesday amid expectations of declining U.S. supplies and following news of an attack on a Yemeni oil pipeline. Light, sweet crude for December delivery rose as high as $98.03 a barrel in Asian electronic trading on the New York Mercantile Exchange. Traders remain worried about whether supplies will be adequate to meet demand for heating fuel in the approaching Northern Hemisphere winter.

Oil inventories likely fell due to a suspension of output at Mexico’s state oil company Petroleos Mexicanos, a major crude exporter to the United States, which temporarily shut its ports last week due to severe weather. Analysts also expect the EIA to report Wednesday that gasoline inventories rose by 200,000 barrels during the week ended Nov. 2, while supplies of distillates, which include heating oil and diesel fuel, fell by 500,000 barrels.

Hence you can see stock prices of palm oil producers jumps today. If the weather continues to bring in flash floods and destroy the plantations in large scale, expect the palm oil futures to skyrocket highger together with the crude oil prices. Now not only Malaysian government has to hike the price of fuel but also the cooking oil.

Other Articles That May Interest You …

Pin It

FinanceTwitter SignOff
If you enjoyed this post, what shall you do next? Consider:

Like FinanceTwitter Tweet FinanceTwitter Subscribe Newsletter   Leave Comment Share With Others


Add your comment now.

Leave a Reply


(required)(will not be published)